{"id":58212,"date":"2021-11-24T23:17:48","date_gmt":"2021-11-25T07:17:48","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=58212"},"modified":"2021-11-24T23:17:52","modified_gmt":"2021-11-25T07:17:52","slug":"nexus-economic-recovery-and-inflation-housing-market-review","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2021\/11\/24\/nexus-economic-recovery-and-inflation-housing-market-review\/","title":{"rendered":"A Nexus of Economic Recovery and Inflation – Housing Market Review"},"content":{"rendered":"\n

Housing Market Intro and Summary<\/strong><\/h2>\n\n\n\n

The home builder stock buying season started on a firm foundation<\/a>. November delivered strong follow-through across a broad range of housing-related stocks even as the housing data settles into a period of normalization. Demand for new and existing homes is well off last year’s heated levels. Supply remains extremely tight for existing homes but is more plentiful for new homes even as starts float downward. The median price for new homes has finally flattened out month-over-month after soaring at a blistering pace. Housing sits at a nexus of an on-going economic recovery and rising inflation concerns which are weighing heavily on consumer sentiment. As long as interest rates remain low, housing demand should continue at current normalized levels… and keep housing prices elevated.<\/p>\n\n\n\n

Monetary policy in 2022 looms as the largest wildcard for the housing market. The last rate hike cycle had an immediate and outsized impact on the housing market. So perhaps it is no surprise that, so far, the Fed is promising to leave interest rates alone for the foreseeable future<\/a>.<\/p>\n\n\n\n

On the policy side, President Biden’s “Build Back Better” Act may have significant impact on the availability of housing to millions of Americans starting in 2022. I conclude this Housing Market Review with a quick look at the bill that just passed the House of Representatives.<\/p>\n\n\n\n